Size Does Matter: How, Where & Why People Buy via @sengineland

In my last post , I had discussed how big retailers with thousands of SKUs are faced with difficult performance management questions relating to their SEM campaigns. I had also analyzed transaction data and shown how small and big ticket items convert differently. Finally, I had also suggested management approaches for effective campaign management of these items. In this post, I shall glean insights about purchasing behavior from transaction data. For the analysis, I classified purchases between $1-$300 as small ticket and $300-$1000 as mid ticket items and over $1000 as big ticket items. I then looked at one month worth of data spanning over 50,000 transactions. Several significant trends emerged including: People Are Price Sensitive… Somewhat When we calculate the distribution of items by average order size, an interesting pattern emerges. While the biggest peak is arou...